(Posted Fri. Jul 11th, 2014)
With forecast planted and harvested corn acres recently lowered by the U.S. Department of Agriculture, the supply-and-demand report released today decreased forecast corn production by 75 million bushels. Despite this, total forecast production, if realized, would only be 65 million bushels shy of last year’s record.
“While the report released today shows robust production, it also details a more concerning trend as it again drops the corn price per-bushel,” said National Corn Growers Association President Martin Barbre. “U.S. farmers remain diligent in our work, striving to produce that abundance for a world with constantly increasing food, feed and fuel needs. Yet, as prices continue to fall and input prices rise, our farmer members are expressing growing concern that their hard work will be for naught, should prices fall below their cost of production.”
Total production forecasts were lowered to 13.86 billion bushels and the projected national average yield held at 165.3 bushels per acre. If achieved, this would set a new record for yield. Forecast area planted and harvested were both lowered by to 91.6 and 83.8 million acres respectively in USDA’s June 30 acreage report.
The report increased estimated beginning stocks by 100 million bushels to 1.24 billion. Thus, despite the decreased acreage, ending stock estimates were raised to 1.8 million bushels.
The report also showed forecast revisions in corn use. Projected demand from the feed and residual sector was lowered by 50 million bushels, based on higher projected use of sorghum and residual.
The season-average farm price was again lowered to $3.65 to $4.35 per bushel, down from $4.50 to $4.80 the prior year.
For the full report, click here.